Amazon.com buying Zappos for $928 mln

Amazon.com said on Wednesday that it has reached a deal to buy online shoe and clothing retailer Zappos.com Inc for roughly $927.9 million, mostly in stock.

The deal is slated to close this autumn and Amazon said the Zappos management team will remain intact.

Stephen Ju, an analyst with RBC Capital, said the deal makes sense culturally as both Amazon and Zappos are very customer-service oriented.

Online retailer Amazon said it will acquire all of the outstanding shares of Zappos and assume its outstanding options and warrants in exchange for approximately 10 million shares of Amazon common stock. It will also provide Zappos employees with $40 million in cash and restricted stock units.

Based on Amazon's closing price of $88.79, it values the deal at about $927.9 million.